Citigroup said the agreement was an important milestone in resolving its mortgage issues stemming from the 2008 financial crisis.
"This alignment allows two strong executives and their teams to continue to lead the strongest home loans business in the industry, while providing greater focus on resolving legacy mortgage issues," Mr. Moynihan said in a statement.
"Whether it's foreclosure processing, mortgage modifications when possible, our agreements with Fannie Mae and Freddie Mac, and now this, it should be apparent that we intend to continue taking aggressive steps to resolve Countrywide's mortgage issues and help keep things moving forward," Larry Di Rita, a spokesman for the company, said.
"These agreements are a significant step in resolving our remaining legacy mortgage issues, further streamlining and simplifying the company and reducing expenses over time," the bank's chief executive, Brian T. Moynihan, said in a statement.
The latest $950 million accord disclosed today extinguished claims from bond insurer Financial Guaranty Insurance Co. "The cost of resolving more of our mortgage issues hurt our earnings this quarter," Moynihan said in a statement today detailing results.
From Lawrence Di Rita, a Bank of America spokesman: "We have a record of resolving mortgage-related issues when reasonable terms can be reached, as we have with several other insurers.
CEO Brian Moynihan said the agreements were "a significant step" in resolving the bank's remaining legacy mortgage issues while streamlining the company and reducing future expenses.
"The mortgage issues in this country were built up over a number of years, and we've said it will take some years to resolve that".
Fannie Mae also is working with the F.D.I.C. to resolve issues related to mortgages bought after the F.D.I.C. took control, Brian Faith, a Fannie Mae spokesman, said in the statement.
Resolve these issues before Mom moves in.
